Suzlon Energy Stock Soars 8% in a Day and 20% Since March—Is Now the Time to Invest?

Suzlon Energy Stock Soars on Major Wind Power Contract

Suzlon Energy has experienced a significant boost in its stock price, increasing by over 8% during intraday trading on the Bombay Stock Exchange (BSE) this past Monday, April 21, marking its second consecutive day of gains. This surge follows the announcement of a substantial 100.8 MW EPC (engineering, procurement, and construction) wind power project secured from Sunsure Energy, igniting investor interest.

Intraday Performance and Market Trends

The trading day began with Suzlon Energy’s shares opening at ₹55.58, a slight increase from the previous closing price of ₹55.08. The stock experienced a robust climb, peaking at ₹59.70, a rise of 8.4%. By 1:35 PM, shares were trading at ₹58.80, reflecting a 6.75% increase.

The stock has shown impressive growth recently:
- 20% increase since March
- 4% rise in April
- 14% jump in March
Over the past year, shares have surged by over 51%, reaching a 52-week high of ₹86.04 on September 12 and a 52-week low of ₹37.95 on May 13 of the previous year.

Details of the Wind Power Project

In an exchange announcement on April 17, Suzlon detailed its new wind power project in Maharashtra’s Jath region. This initiative represents the company’s entry into the wind energy sector.

Contract specifics:
- Suzlon will supply 48 advanced S120 wind turbine generators (WTGs), each with a capacity of 2.1 MW.
- The project encompasses the supply, installation, and commissioning of the turbines, along with ongoing operations and maintenance support.

This new undertaking is set to enhance Sunsure Energy’s renewable energy portfolio and aims to provide Round-The-Clock power to customers in Maharashtra.

Retail Investor Interest Grows

Recent filings reveal that retail investors have increased their stake in Suzlon Energy to 25.12%, up from 24.49% at the end of December. Meanwhile, foreign portfolio investors have maintained a steady holding of approximately 23%. However, domestic mutual funds have slightly reduced their stakes from 4.44% to 4.17% in the latest quarter.

Expert Insights on Stock Performance

Market analysts are optimistic about Suzlon Energy’s future, particularly regarding its growth prospects and valuation. Hardik Matalia, a derivative analyst at Choice Broking, noted that the stock is on the verge of a breakout following a 46% decline from its peak.

Key indicators:
- The stock has formed a solid base after the recent correction, attracting strong buying interest.
- Immediate resistance is observed near ₹62; a decisive move above this level could signal a powerful upward trend towards ₹70.

Matalia emphasized that the stock’s price movements suggest bullish momentum, with the Relative Strength Index (RSI) indicating improving buying momentum.

For short-term traders:
- Current levels present an attractive buying opportunity, especially if the stock remains above ₹55.
Long-term investors are encouraged to gradually accumulate shares, taking advantage of dips to strengthen their positions.

However, some experts caution that the stock is nearing crucial resistance levels. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, highlighted the importance of monitoring the ₹60 mark for a potential sustained upward movement.